It is the latest blow for the company, with employees recently working almost six weeks without pay to keep Gujarat's Illawarra mines open.

In this morning's statement, Mr Singh said despite a multi-million dollar injection of cash from the company's major investor Jinal Steel and Power, further cost cuts are imperative for Gujarat's mines to remain sustainable.

It is hoped the majority of the positions to go will be filled by voluntary redundancies or natural attrition.

Graham White from the Mining Division of the CFMEU says the union was called in for discussions on redundancies yesterday.

He says the redundancies will be widespread.

"They are talking across all ranks, that number is across all ranks including staff, engineers, deputies and trades and miners," he said.

Mr White says the redundancies are disappointing, but he is pleased with the way Gujarat has approached the situation.

"For the first time, this company is sitting down, having a long term plan," he said.

It is hoped the redundancies will be voluntary, with expressions of interest due by the 23rd of December.

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